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Fleet Head Should Negotiate Sales Opinion in Washington Backs President Coolidge’s Stand for One Man Control REVAILING opinion in Wash- P ington strongly approves the at- titude of President Coolidge in urging that the disposal of the laid- up fleet and other vessels of the shipping board be turned over solely to Admiral Palmer, head of the Emer- gency Fleet Corp., instead of intrust- ing the negotiations for such disposal to the divided and hence unwieldy shipping board of seven members. The President has shown wise foresight in favoring this sort of a policy, it is pointed out, and increased sales of the white elephant fleet should re- sult and should be effected with less controversy. President Coolidge’s part in the ship sales problems has helped turn the attention of the public toward the merchant marine still more strongly. The suggestion that the ship sales be conducted in the future on a one- man basis coming from such a high quarter has more than ordinary signi- ficance. By some it is taken to mean that the President strongly favors the cutting down of the present size of the board, possibly to at least three mem- bers, and that he may even make this recommendation to congress at the next session. At this session, it appears more strongly now than ever, that the shipping situation will be one of the major questions of public in- terest to be taken up. Remove Sales Difficulties The statement was made at the White House that the President, in making the suggestion that the head of the Fleet corporation should nego- tiate future sales of shipping board tonnage himself, sought to overcome the difficulties involved in making sales contracts within the present membership of the board. Authority thus designated to an individual, it was pointed out, would make for convenience to prospective purchasers of vessel tonnage, and that more as- surance could be given of satisfactory negotiations for the sale of the ships. It was pointed out that shipping men, who had in mind the purchase of some of the government vessels, may have been “scared out” by the thought of having to win the approval of the seven shipping board members. The negotiations themselves with the full membership of the board also had BY FRED B. PLETCHER many difficulties. It has not been found expedient to negotiate for pur- chases under the present conditions. Naturally, opposition exists in ship- ping board circles to the President’s suggestion, even though the board would be given the final approval on deals negotiated. With the new sales policy adopted, the power of the board will begin and end with the right of approval or disapproval of the contracts, and members will have no part in the actual sales. Offer Vessels for Scrap The shipping board prepared its terms of sale for the bids opened June 30 for the disposal for scrap of Board Delegates Palmer To Negotiate Sales Acting upon the suggestion of President Coolidge the shipping board, on June 23, delegated the authority to negotiate all sales of ships to Admiral Palmer, head of the Fleet corporation. This arrangement will make it possible for prospective buyers of ships to deal with the government in a direct and efficient manner, and is a step forward. 200 of the laid-up vessels. And the $6,000,000 Hog Island shipyard at Philadelphia also has been placed on the market for sale to the highest bid- der by the fleet corporation. Disposal of the Hog Island yard will be by sealed bid only. A recommendation had been made by the Fleet corpora- tion that the property should be ad- vertised for sale, which the board ap- proved. It is not expected, of course, that any substantial part of the orig- inal cost will be recovered. Specifications governing the sale of 200 vessels for scrap provide two alternatives first that the vessels shall be completely dismantled and scrapped as steamships, within the continental limits of the United States, inclusive of engines, boilers, auxiliary machinery and other equipment, which shall be rendered non-usable for other than scrap; second, like the first ex- cept that, purchasers are at liberty to make such disposal or sale of en- gines, boilers, auxiliary machinery and other equipment as they desire. 265 Washington Correspondent, Marine Review Bids must be on a lump sum basis, and they are to be received on any or all of the ships. The vessels to be scrapped have a total tonnage of 817,130. Included in the group are 150 coal and 50 oil burners. Sixty- seven of the lake-type vessels are list- ed among those to be scrapped. The oil burners are ships of from 5070 to 53840 tons, and all the coal burners exceed 8000 tons, running to a maxi- mum of 4165 tons. Purchasers may buy from the lot of 200 vessels at “serap prices and convert them to diesel engine propulsion. The agree- ment must be to scrap or to convert to diesel equipment. Bids for Services Refused The board has turned down two propositions which would have made some modifications of freighter serv- ice between the North Atlantic coast and the North Continental ports. One of these rejected proposals was sub- mitted by the Black Diamond Steam- ship Corp., New York, which operates the American Diamond line of freight- ers from New York to Rotterdam and Antwerp. The proposal was to buy 14 freighters of 8000 tons each from the government. This proposal, the board held, would have interfered with the allocation contract with Rogers & Wells, of the Yankee line. ' Another proposal turned down by the board was one in which the Trans- marine Corp. and the Cosmopolitan Shipping Co. offered to take over, with their privately owned ships, the service from New York to Rotter- dam and other ports now operated by the Black Diamond corporation. This proposal was conditioned upon the Yankee line service being allocated to the Transmarine Corp. and the Cos- mopolitan Shipping Co. for one year, they to guarantee all the service for the year, up to present standard. The National Merchant Marine con- ference, organized under the diree- tion of the United States chamber of commerce, which will make the broadest study of the government mer- chant marine situation that has yet been undertaken, is taking steps to go to the bottom of the whole situa- tion. It may be stated that both Secretary of Commerce Hoover and the President are kept in close touch with the progress of the conference.